Functions and Objects of Statistical Average
To get a single Value that Describes the Characteristics of the Entire Group The purpose of an average is to represent a group of individual value in a simple and concise manner so that the mind can get a quick understanding of the general size of the individuals in the group. For example it is difficult to generalize anything from the ages of 80 crore of India people but if it is said the average age of Indian is 52years one can draw conclusions about health conditions of the people.
b.To Facilitate Comparison An average provides a common denominator fro comparing one set of data with others and conclusions can be drawn about the characteristics of the separate sets of data. If the average monthly sales of department a bare compared with the average monthly sales to the department B a quickly and easy comparison of the sales of the two department can be made.
c.To Trace Precise Relationship Average becomes essential when it is desired to establish relationship between different groups in quantitative terms. Simply saying that income of an average American is more than that of an average Indian is vague. It is relatively more precise if the respective incomes are expressed in terms of averages.
d.To know about the Universe from a Simplex Averages also help i obtaining an idea of a complete universe by means of samples data. The average of a sample gives a fairly good idea about the average of the population.
e.To Help in Decision Making average are valuable in setting standards for managerial control. For example a business manger is often interested in representative value of wage general sale normal output of a plant etc. All these expressions refer to some sort of an average.